cosunter【300436】
In February 22, 2017, Fujian Cosunter Pharmaceutical Co., Ltd. (hereinafter referred to as “Cosunter”) and Sinopharm Group Co. Ltd. (hereinafter referred to as “Sinopharm Group”) signed the Strategic Cooperation Agreement between Sinopharm Group Co. Ltd. and Fujian Cosunter Pharmaceutical Co., Ltd.
The vice president of Sinopharm Group, Mr. Cai Zhongxi told us at the signing ceremony that: Sinopharm Group is the largest pharmaceutical company in China, ranking first in Asia and fourth in the globe, which is equipped with an integrated marketing network covering main big and medium-sized cities in China, 31 provinces, direct-controlled municipalities and autonomous regions covered by its distribution network, with its annual operating income nearly up to RMB 260 billion in 2016; and great efforts have been made by all staff members to become “the best brand of medicine distribution in China”.
Sinopharm Group as a state-owned holding company relies on pharmaceutical wholesale to provide leading supply chain service for medical organizations. It is willing to offer better service for domestic self-development pharmaceutical enterprises like Cosunter so as to create more opportunities for our pharmaceutical industry and provide Cosunter with more better value-added services.
Cosunter’s president Li Guoping was glad to indicate that Cosunter was determined to be a leading company working on liver medicine development. We will follow the principle of equality, mutual benefit and development during the cooperation with Sinopharm Group. We believe that both parties will be sincere and honest and help each other for the win-win purpose. We will make efforts together to maximize our benefits and deepen our cooperation.
Both parties agreed in the signing ceremony that they would build future-oriented, long-term stable strategic partnership so that Cosunter could share superior resources of Sinopharm Group in distribution channels, retail outlets, DTP drugstores, marketing and bid invitation services across the country to lower circulation cost, improve operating efficiency and make its strategic goal come true, i.e. to accelerate Cosunter’s transformation and upgrade to a new stage.
After the ceremony, 8 leaders representative of Sinopharm Group and its subsidiaries went to visit Cosunter’s production base including its modernized workshops and quality inspection center.
Sinopharm Group thinks highly of Cosunter’s quality inspection center which insists on “no defects” and better quality by strict control standards for product quality, and feels very confident with the all-round cooperation between both parties.
This strategic cooperation between Cosunter and Sinopharm Group contributes to mutual development and sharing various resources related to product, information, channel and service. Both parties hope to establish future-oriented, long-term stable strategic partnership by this cooperation. This is an essential action taken by Cosunter to actively cope with a series of medical reforms and new policies like “two-vote system”, “replace business tax with VAT” and “channel integration” so as to accelerate the transformation and upgrade of its sales model and playing a leading role in the new competitive landscape.
Both parties hope to share all strategic resources by intercommunication on the basis of separated purchasing negotiated and relying on third-party logistics and multiple-warehouse operation for the win-win purpose.
The agreement means significant strategic cooperation, helps to improve Cosunter’s medicine distribution system and make more customers exposed to our products, and will accelerate the operating network building and improve the business performance.